Tesla (TSLA) heads into earnings Wednesday night as the weakest link of the “Magnificent Seven” — and it’s the first of the group to report.
Since the broader market’s March 30 low, Tesla is up only 11%, dead last among its Magnificent Seven tech peers. It’s also down 12% year to date, the second-worst Mag 7 performer, with only Apple (AAPL) faring worse. And on today’s tape, it’s the second-biggest decliner in the group, trailing only Meta (META).
Tesla's 1-year chart with the 200-day moving average.
The one-year chart tells the story of a range-bound stock. Four formations stand out.
First, a months-long sideways consolidation through the summer, with price oscillating around the 200-day moving average. Second, a steady climb that carried the stock into the fall. Third, a steep rally to new all-time highs in December that turned into a false breakout — the move was quickly reversed. And fourth, a long descending trendline that defined the decline into the April lows and that Tesla just broke above last week.
On Friday, Tesla barely closed above its 200-day, which sits around $400. Today, the stock has slipped back below it. But the 200-day is nearly flat right now, and flat moving averages are notoriously noisy.
The real test isn’t the moving average. It’s Wednesday’s earnings report — and it doubles as the first check on whether the Magnificent Seven can keep leading the broader rally. Since the March 30 low, the group has outpaced every major index, and Tesla is first up with hard numbers.
Levels to watch:Above $400, the next zone of potential resistance sits at $450 to $460, an area of prior price action. To the downside, bulls would want to see $335 to $340 hold — the floor under the recent April lows.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him atjaredblikre@yahooinc.com.
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